System and process for providing loans or other financing instruments

Abstract

Automated financing products, services, and processes are enabled by the more complete, timely, and accurate information provided by a conditional access network. In one example, the financing product is an automated loan process. The automated loan process is able to receive timely product information, such as product status and location, and adapt loan terms, rate, or loan amount responsive to the information. For example, a loan may be adapted according to product activations, products that are deactivated, or according to which distributor is holding product. Information from the conditional access network may also be used to evaluate repayment terms. For example, the loan provider can use information from the conditional access network to confirm status of collateral, and accelerate the loan as appropriate. In this way, loan risk is reduced.

Description

RELATED APPLICATIONS [0001] This application claims priority to U.S. patent application No. 60 / 698,805, filed Jul. 12, 2005, and entitled “Conditional Access Network for Providing Loans, which is incorporated herein in its entirety.BACKGROUND [0002] 1. Field [0003] The present invention relates computer processes for providing loans. More particularly, the invention relates to automated processes that adaptively provide information for delivering loan products. [0004] 2. Description of Related Art [0005] Providing loans or other financing instruments, are by their nature, a risky business. Financial instruments, such as loans, credit instruments, debt instruments, or other debt obligations are often used to finance and support business activities. To simplify discussion, this application will particularly address loans, but it will be understood that other financing instruments may be used. In the financial and loan business, better information, and more timely information, leads to...

AI Technical Summary

Benefits of technology

[0007] Briefly, the present invention provides new automated financing products, services, and processes, which are enabled by the more complete, timely, and accurate information provided by a conditional access network. In one example, the financing product is an automated loan process. The automated loan process is able to receive timely product information, such as product status and location, and adapt loan terms, rate, or loan amount responsive to the information. For example, a loan may be adapted according to product activations, products that are deactivated, or according to which distributor is holding product. Information from the conditional access network may also be used to evaluate repayment terms. For example, the loan provider can use information from the conditional access network to confirm status of collateral, and accelerate the loan as appropriate. In this way, loan risk is reduced.

Problems solved by technology

Providing loans or other financing instruments, are by their nature, a risky business.

A component of this risk is the possibility of loss and theft of the products underlying the obligations.

Accordingly, the creditor needs to understand the value of the products in the distribution chain, and the risk that the products will not be sold.

However, in many businesses, decisions to book accounts receivables are based upon a variety of rules that can result in greater or less risk being assigned in this type of loan instrument.

Products that are distributed to wholesale and retail clients can be subject to high levels of returns by these entities when they are ultimately not sold.

While these variations relate directly to the risk of the loan, they are frequently not clear to a potential lender.

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